New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-01
j. L. HILLS DEFALCATION.
THE LOTTIMER ESTATE DEFRAUDED.

Another case Of breach Of trust aud misappropria
ton Of property the result of Wall Street speculations
has como to light Jerome L HILL of the trustees of
the Lottmer has confessed that railroad
bonds to the amount of $25O000 belonging to the
estate and used them margins in dealing in stocks
Three Stock Exchange firms concerned in the matter
as they received the securities and prolonged litigation
for tho recovery OF the bonds apparently unavoid
able.
Mr.. Hill partner formerly with the we-known
dry-goods house of which william Lottimer the
head Mr. Lottimer died about ten years ago leaving
esats which valued at close to 81 100000. About
100000 represented by railroad bonds Of the first
class and other securities OF high order The estate
placed In trust for long term Of years and William
A. Lottimer the son OF the deceased merchant John
Bloodgood Of the weknown broker age house Of John
Bloodgood Co., who soniu-law, and Mr.
Hill made the trustees and executors The
will OF the old merchant expressly provided that
OF the trustees should TO placed under bonds Mr.
Loitmcr had perfect faith in his partners honesty and
I'm his keen business talent The drygoods firm
ried for short time by william A. Lottimer and Mr.
Hill. but finally dissolved Since that time Mr. Lot
timer has been president OF the New.York Fireproof
Paint Company. with offices at No. S5 Willamst. He
lives In Stamford, Conn.
There not the slightest suspicion OF any Irregular
y the part of Mr. Hill until Friday last The day be-
fore he for intimate friend Of himself and the
Lo;tmer family told hin that he had been unfortu
S25OOOO OF the securities belonging to the estate He
seemed to be in great distress and anxious to find
relief In condug the secret OF his misortunes and
wrongdolng. The confidence given TO the friend at
Mr.. Hps home in Yonksrs. Foster & Thompson, the
Law firm, the counsel OF the estate Mr.. Thompson
yesterday that for obvious he could not
veal the Of the friend to whom Mr.. Hill first told
his story. The friend amazed and grieved
at what he had heard and Friday
he laid the facts before Mr. Thompson. An investigation
at the Mercantile safe Deposit Company. which has
Assurance society and where tue securities belonging
Lotmer estate stored, showed the amount and
character Of the bonds that had been puoined t was
also whole bonds had passed.
ehSge eI Sogse. Of WORK oTees Co.. No. es Broad
way; Il. Newcombe & Co, OF No. Broadst and Lock
Foster Thompson sent notice TO each firm stating that
the bonds had been improperly abstI ted and hat the
return Notice was also sent to the stock Exchange
thores announcing The fact and giving tue numbers OF
the bonds The Mercantile safe Deposit Company also
The bonds taken by Mr. Hill $50 900 OF the issue
pany, 100000 bonds OF the Missouri Pacific Railway
Company and 100000 bonds OF the Chicago and North
day that he did not remember what the par
lcular but they bore high rates OF interest
aud commanded premium In the market. Ihey bad
placed with the different firms In about this pro-
portion: Work. Okesie x Co, 100000 lockwood @ u &
whole $3.50 900 formed part OF about ~ in secu-
rites which had been Kept for saisksepins oy tine s
pany Tho estate s understood TO hold that Mr. Hill had
OF the saie Deposit Company and that the company had
no hority To surrender them The suits that Will
probably be instituted against the three brokerage houses
recovery OF the bonds their value will be based
on tue ground that the concerns ought TO have made
inquiry tn the ownership OF the securities offered AS
margin by Mr.. Hlll Mr.: Thompson said YESTERDAY
Mr. Hill was known TO be ~ only moderate c,rcum-
he might have swung In speculative venture would
have said 100 TO 800 shares at the outside None
1 Ss,e us had al" aDse a,y idea that Mr. Hli had
been dealing in thousands OF shares; II
onss that would have prevented or lessened the loss"
The absence out OF town OF the members OF the firms
which will be sued for the recovery OF the $2ooo0o
bonds precuded the obtaining OF an official statement
from them. friends OF the houses however, SAID that
the bonds doubtless taken Ia perfect good ah aud
the fact that Mr. I'M wa retired merchant ana a was
reported TO have cleared 100000 Ia stock speeuaton
In $50 aayed all suspicion probably OF the character
amount of IIilrs OPERATIONS aud OF his collateral
Mr.. Iiill has never been known generally In wall
street circles aud he is not familiar In the customary
haunts OF brokers aud operators In this city, Ito IL
sSidreh aDHd n lie ved odesiiy but comfortably in
ksrs did entertan avishly and not suspected OF
badly bitten 5y the fever Of speculation How long ne
has speculaed in the street is not accurately known
by HIM was the $4,000 ST. Paul Railway bonds, and
souri, Pacific and the Chicago and Northwestern bonds
taken from the safe deposit vaults In different lots
required Tue last os removed by him in June last.
II is sid by some persons that he first bagan operating
and the dissoi the edrygoods rm lie had accounts
with number OF broker.e houses but 1t is only within
heavy. He has been carrying ifom $1,000 to 10000
shares OF stock at time and frequently was so reckless
that his brokers had to restrain HIM lie waud give an
order for the purchase sale OF 900 shares with as
much Indifference as the average operator possesses III
ordering transaction IN 100 or 200 shares IL is gos-
slipped that lost heavily In the stock crash OF last De
ceInber and the recent breaks in tho MARKET MT
.aa sm Ia' 10 have been ea'' Sew.Ycrk and NewEng.
land aud Western Union telegraph. although
he occasionally made ventures In other prop
eres lie was great believer In the ultimate success
OF the socaled Baltimore and Ohio deal" and relied
aD month mt past Mr. m has not been to city except
occasionally He has been moody ana Ss
he had physical ament HIS losses np 20 ny Silc
are rsmopss which lei h to reveal his troubles the
friend who informed the counsel OF the Lottmer estate
Mr. Lotimer left on his death besides his son William
A. one OF the trustees of the estate daughter VINO
William L. Pomeroy, formerly OF the dry.goods house of
Pomeroy & Plunmer, In Leomird.st Another aangnter
Mr. T6ompson said yesterday that his firm had taken
no proceedings yet against Mr. Hin and had made no
cerning ourselves the start, he said In seeking 10
recover the lost property suppose the Stock
M and we will then for their recovery Any proper
inquiry would easily have led TO the discovery That Mr.
and and the brokers took the bonds at their peril"
Mr. l is at present living In handsome place AZ No:
frame one stands back distance from the street az
the head OF welkept lawn which gently slopes % h
the broad avenue The spacious plaza In 'front.' OF th
house k shaded with trailing vines and beds OF rare and
beautiful flowers adorn the lawn. .,
TRBuNI reporter who called at the place yesterday
was told by Deos McCurdy. or VenderPosoi
Green n Cunning, Of this city, that MI I'M
was too III 10 talk with any on business matters
About weeks ago he overcome by the neat anu
the effects OF this had not yet left him: -, -,
Mr. McC urdy extremely guarded III MS iahguase
in regard Mr. Hills transactions as An executor Oh ,
Iotiner estate and would neither affirm nor deny tat
he had appropriated the bonds 10 his own use ne saa
that suit to determine the ownership OF tie ponaS ,
wonld be begun either t0day or tomorrow, and unti
that suit was begun he could say nothing aooI1t the
matter.
PASSENGERS ROBBED on TIE STEAMSHIP ELBs
Ernest Otz, dealer In silks. was passenger on inc
steamer Elbe, OF the North German Lloyd Lne wnich
came up from Quarantine yesterday morning. Ai,er
taking his family the Hotel Naegel In HoooXen no
to Police Headquarters In this ciy anu
% Robb that he had been robbed the journey
over the ocean thief entered his stateroom while MS